Ahmedabad, October 1 (Daily Kiran) : The Enforcement Directorate (ED) has temporarily seized assets worth ₹43.65 crore in connection with Electrotherm India Limited (EIL) under the Prevention of Money Laundering Act (PMLA) of 2002. The seizure includes ₹25.08 crore held in two bank accounts of EIL at Yes Bank and 13,57,775 shares valued at ₹18.57 crore, owned by the promoters.
This investigation was initiated based on a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) and the Bureau of Serious Economic Offences and Financial Fraud (BSA&FB) in Mumbai. The FIR cites various sections of the Indian Penal Code (IPC) of 1860 and the Prevention of Corruption Act of 1988 against EIL and its directors.
The case stems from a complaint by the Bank of India, which alleged that between 2007 and 2013, the accused misappropriated funds obtained through credit facilities from the bank. EIL reportedly owes a total of ₹631.97 crore, and the account was later transferred to Edelweiss Asset Reconstruction Company for ₹550 crore, resulting in a loss of ₹81.97 crore for the bank.
Further investigation revealed that the loans provided by Bank of India for company expansion were misused to pay off existing debts immediately upon receipt. Additionally, EIL transferred funds to various entities, which were then withdrawn in cash, either directly or through other institutions. Millions of rupees were withdrawn in cash from EIL’s bank accounts during the specified period.
In January 2025, the ED conducted searches at the premises of the company and its directors/promoters under the PMLA, resulting in the seizure or freezing of assets worth ₹38.32 crore. This latest attachment brings the total amount seized or frozen in this case to ₹81.97 crore, with the ED continuing its investigation.
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